Summer Internship Report (Shekhar Chandra) (CA)

SUMMER INTERNSHIP PROJECT
REPORT ON
“ACCOUNTS & FINANCE”
AT
SHEKHAR CHANDRA & COMPANY
(RISHIKESH)
Summer Training Project Report
Submitted in the partial fulfillment of B.Com(Hons.) V SEMESTER
SWAMI RAMA HIMALAYAN UNIVERSITY
HIMALAYAN SCHOOL OF MANAGEMENT STUDIES
(Batch 2017-2020)
MENTOR: - SUBMITTED BY: -
Mr. Sandeep Badoni
HSMS, SRHU
TANYA REKHI
Reg. No: - DD1712302054
Enrollment No: - SRHU17000434

CERTIFICATE
This is to certify that the Summer Internship Report entitled “Accounts
& Finance, Direct & Indirect Taxation” by “Tanya Rekhi” is her
original work. She has worked under my guidance for the required
period. This dissertation fulfils the requirement of the ordinance
relating to Summer Internship Training.
No part of this report has ever published by any other university or
institution for any purpose whatsoever.
Mr. Sandeep Badoni
Assistant Professor
HSMS, SRHU

Training Completion
certificate from the
organisation

DECLARATION BY THE STUDENT
Dated: - 12-August-2019
This is to certify that the present Summer Internship Report entitled
“Accounts & Finance, Direct & Indirect Taxation” is my original
work. This Summer Internship Report fulfils the requirement of the
“B.Com(Hons.)” degree of this University. It does not form the basis
for the award of any degree or diploma from any other university or
institution.
Tanya Rekhi (B.Com(Hons.) V Sem)
Reg. No: - DD1712302054
Enrollment No: - SRHU17000434

ACKNOWLEDGEMENT
I would like to express my deepest appreciation to all those who
provided me the possibility to complete this report. I have taken efforts
in this project. However, it would not have been possible without the
kind support and help of many individuals and the organization. A
special gratitude I give to our project manager Mr. Shekhar Chandra
and my college mentor Mr. Sandeep Badoni whose contribution in
stimulating suggestions and encouragement, helped me to coordinate
my project specially in writing this report.
Furthermore, I would also like to acknowledge with much appreciation
the crucial role of the staff, who gave the permission to use all required
equipment and necessary materials throughout the period. Last but not
least, my thanks go to the head of the project Mr. Shekhar Chandra who
have invested his full effort in guiding the team in achieving the goal. I
have to appreciate the guidance given by the other supervisor as well as
the panels especially in our project presentation that has improved our
presentation skills thanks to their comment and advices.

Index
1. CHAPTER 1: Introduction..................................................................... 1-11
1.1. Introduction of Organization Business Sector........................................... 1
1.1.1. About the Industry
1.1.2. Mission and Vision
1.2. Organizational Structure............................................................................ 4
1.2.1. Organizational Structure
1.2.2. Top 11 CA Firms in India
1.3. Competition Overview (20 Firms)...........................................................11
2. CHAPTER 2: Company Profile.............................................................12-21
2.1. About the Company .................................................................................13
2.1.1. Departments of CA Company
2.2. Services Offering ..................................................................................... 18
2.3. Audit.........................................................................................................21
3. CHAPTER 3: Conceptual Discussion .................................................. 22-54
3.1. Objective of the Study ............................................................................ 23
3.2. Job Description ....................................................................................... 24
3.3. Overview of TDS.................................................................................... 25
3.3.1. TDS Returns
3.3.2. Process Flow of TDS
3.4. Overview of Vouching............................................................................ 29
3.5. Preparation of books on Tally................................................................. 30
3.6. Preparation of Partnership Deed............................................................. 31
3.7. Overview of VAT ................................................................................... 35
3.8. Overview of Tally ERP9......................................................................... 40
3.10 AS 26 Intangible Assets........................................................................ 46
3.11 Overview of Auditing........................................................................... 47
3.12 Overview of GST.................................................................................. 50
3.13 Overview of Taxation ........................................................................... 54

4. CHAPTER 4: Work and Research...................................................55-66
4.1. Description of accomplished work in Organization ...........................56
4.2. Description of Research under the supervision ..................................58
4.2.1. Taxation
5. CHAPTER 5: Learning, Conclusion & Suggestions.......................67-74
5.1. Behavioral Learning From Organization............................................68
5.2. Suggestions and Recommendations....................................................71
5.3. Limitations ..........................................................................................73
5.4. Conclusion...........................................................................................74
6. CHAPTER 6: Bibliography ..............................................................75-76
6.1. References...........................................................................................76

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INTRODUCTION OF THE
ORGANIZATION’S BUSINESS SECTORS
About The Industry
Organization is working as Chartered Accountants firm under the rules
and regulations and code of ethics designed for CA firms by ICAI (The
Institute of Chartered Accountants of India).
The Institute of Chartered Accountants of India (ICAI or the Institute)
was established as statutory body on July 1, 1961 under Chartered
Accountants Ordinance, 1961 to regulate the profession of accountancy
in the country.
ICAI is governed by the Council which consists of nineteen members.
Fifteen members are elected from amongst the members for a period of
four years. The remaining four of the Council members are nominated
by the Government of India.
These kinds of firms provide different kinds of professional services
like audit, taxation and management consultancy to its clients.
The Chartered Accountancy course is conducted by the Institute of
Chartered Accountants of India, which has its headquarters in New
Delhi, 5 regional offices (Calcutta, Kanpur, Chennai, Mumbai and New
Delhi) and 81 branches under these regional centers.

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MISSION & VISION
Mission of ICAI
Is to achieve excellence in professional competence, add value to
businesses and economy, safeguard public interest; ensure ethical
practices and good corporate governance while recognizing the needs
of globalization.
Vision of ICAI
The profession of Chartered Accountants in India should be the
benchmark of professional excellence upholding the principles of
integrity, transparency and accountability.

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ORGANISATIONAL STRUCTURE
A hierarchy is an arrangement of items (objects, names, values,
categories, etc.) in which the items are represented as being "above,"
"below," or "at the same level as" one another and with only one
"neighbour" above and below each level. These classifications are
made with regard to rank, importance, seniority, power status, or
authority. A hierarchy of power is called a power structure.
Following is the organizational hierarchy of the firm:-
 Partners
 Directors
 Senior Managers
 Managers
 Supervisors
 Senior Trainee Students
 Junior Trainees
Various levels of the firm have different functions. Partners are often
the founders of the firms. Most of the firms’ names are associated
with the names of partners. They are basically the main parties who
issue and sign any report (specifically audit report) on behalf of the
firm. Partners mostly communicate with the Senior Managers. In
other words, the progress of any report and any inquiry is made from
the Senior Managers and hierarchal structure is strictly followed to
avoid any disruption.
Managers are inquired of by Senior Managers and mostly manager
manage audit field works etc. and after field work managers with
cooperation of senior managers makes and finalize any audit report
to be issued. Senior Manager is a qualified Chartered accountant
having more than 10 year working experience.
Field work and information collection and implementation of
policies by adopting changes in rules & regulations is the main
responsibility of supervisors and trainees. They use different kind of
techniques for error and fraud detection.

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Top 11 CA firms in India
1. Deloitte: -
Deloitte, in terms of Revenue, is the largest professional services
network in the world. Also on the basis of a number of professionals,
it is the largest professional services network in the world.
Deloitte is known for providing audit, tax, consulting, enterprise risk
and financial advisory services to more than 200,000 professionals in
over 150 countries. They are the Advisors to many of the World’s
most admired Brands.
The Consulting services of industries work on the theory of
‘Providing practical perspectives and solutions to queries.’ Deloitte
believes in ‘Good to make it great!’ They believe in ‘helping
clients to become Leaders’.
2. PWC: -
Price Waterhouse Coopers has been the world’s second largest
professional services network in terms of Revenue as surveyed in 2014
and is one of the Big Four Auditors and stands neck to neck with
Deloitte, EY and KPMG.
The Firm believes in helping resolve complex issues and identifies
opportunities. People from all backgrounds such as arts, business,
economics, engineering, finance, health, information technology, law
and more are entertained.

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3. KPMG: -
Having its global headquarters in Amstelveen, Netherlands, KPMG has
been considered as one of the largest professional services companies
in the world.
It is amongst the Big Four auditors, standing along with PWC, Deloitte
and EY. The professionals employed with this firm, KPMG is 162,000
people and performs three services, viz. audit, tax, and advisory. The
tax and advisory services provided by the firm are further divided into
various service groups.
4. Ernst & Young: -
Ernst & Young abbreviated as EY is a multinational professional
services firm having its headquarters in London, United Kingdom. In
terms of Revenue, it has been ranked as the world’s third largest
professional services firm surveyed in 2012 and is one of the four
biggest audit firms.

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5. BDO International: -
BDO International stands at the fifth rank for providing the largest
accountancy network in the world.
It is a worldwide professional services network and one of the best
public accountancy firms. It has its competency is in serving national
and international clients.
Following a survey conducted in 2014, September, BDO has its
Member Firms in 151 countries and takes pride in employing around
60,000 Partners and staff in 1,328 offices throughout the world.
6. Grant Thornton International: -
Grant Thornton is a UK based firm which has its branches in almost
125 countries. This firm is known for generating very high revenue
which is more than 4.5 billion dollars.
It is providing services in assurance, tax and advisory firms. Grant
Thornton is also known for providing services in Assurance and
Taxation and other consultancy services relating the financial matters.
It has been operating for 100 years. Grant Thornton has provided valued
service to organizations with the potential to grow and to operate
internationally. It makes the professionals adapt to market conditions
and deal with complex events or transactions.
The member office of Grant Thornton is situated in Connaught Place in
New Delhi.

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7. RSM International: -
RSM ranks the 7th largest among the professional services network for
audit, tax and advisory firms. It takes pride in holding the 6th rank as
the largest global provider of tax services in the world.
It has its fully independent member firms and correspondents in 111
countries surveyed, September 2014. The member firms of RSM
International have a combined total of 35,396 staff which includes
3,221 partners in 718 offices.
Three of the original member firms of the organization are Robson
Rhodes (UK), Salustro Reydel (France) and RSM
McGladrey/McGladrey & Pullen (USA).
8. SS Kothari , Mehta & Co.: -
The best thing about this Firm is that it has over 55 years in existence.
SS Kothari has been one of the highly reputed firms in Delhi and has
its branches in 100 other countries.
It has created a strong National presence through a network creation of
6 offices and 20 associates which covers almost all the regions of the
Country. With a combination of Partners and Associates, it has covered
almost all the parts of the country.
It offers services in BPO, Tax Advisory Services, Merger and
Acquisition, Statutory Audit Services, Corporate Laws and other
different areas.

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9. Lodha & Co.: -
This is also a vintage firm set up in 1941 and has its offices all over
India. They operate in locations like Kolkata (Calcutta), Chennai
(Madras), Hyderabad, Mumbai (Bombay), New Delhi and Jaipur.
Lodha & Co. has proficiency in providing professional services to a
large number of corporate clients, central banks, banks, insurance
companies, public sector corporations etc. They operate both in India
and Internationally.
10. Sahni Natrajan & Bahl (SNB): -
SNB is a national Indian firm which is based in Delhi and provides its
services in the field of audit, consulting, accounting and allied areas. It
was established in 1981 and is one of the leading Firms in India having
its Headquarters in New Delhi and branch offices in Bangalore and
Mumbai.
The Firm has kept its Aim for providing services of the highest quality,
resulting in the addition of value to each of its clients in a totally
professional, independent and ethical manner.
It is known for providing services in various areas like Taxation,
Auditing and Internal Audit, Corporate Laws and several other services
relating to services.

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11. Luthra & Luthra: -
Luthra & Luthra is a Delhi-based firm having six other partners. The
Firm was established in 1979.
It has been one of the most leading firms in India and has been providing
its services in audit, advisory, tax and corporate law matters. It is
bound to provide high-end services to its clients.
The success of Firms depends on its professionals, thus the Firm
focuses on training its employees such that they could find solutions to
the various needs and queries of its clients and thus, achieving the
Organizational goals. It has its branches in Delhi, Mumbai, Bangalore,
Chennai and Noida.
This firm is known for providing its service in different fields like
Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI
related services in cooperation with 18 highly qualified personnel.

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COMPETITION OVERVIEW OF CA FIRMS
BY REVENUE (30 FIRMS)

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ABOUT THE COMPANY
Shekhar CA & Co. is a leading chartered accountancy firm. It is
rendering comprehensive professional services which include audit,
management consultancy, tax consultancy, accounting services,
manpower management, secretarial services etc.
It is a professionally managed firm. The team consists of distinguished
chartered accountants, corporate financial advisors and tax consultants.
The firm represents a combination of specialized skills, which are
geared to offers sound financial advice and personalized proactive
services. Those associated with the firm have regular interaction with
industry and other professionals which enables the firm to keep pace
with contemporary developments and to meet the needs of its clients.
Shekhar CA & Co. has a clear vision for the future growth and
development of financial markets and services and researches to stay
ahead of these trends and developments. Shekhar CA & Co. moulds its
operations and areas of competencies and introduces services so as to
assist clients in their business operations and growth.

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DEPARTMENTS OF CA COMPANY
Shekhar CA & Co. is having its head office in Rishikesh. Almost all the
controls and regulations are dealt at head office in Rishikesh. All the
offices constitute different number of departments who basically handle
their respective functions. The major departments include:
Audit and Assurance Department: -
Firm provides audit and assurance services to wide range of clients
which include performing audits of financial statements of limited
companies, NGOs and partnerships. Firm also performs special
assignments which include management audits, internal audits and
investigations. Audit focuses on business issues and the matters that can
impact on the financial statements, whilst also retaining the basic audit
procedures that test the information contained in the financial
statements. Services are aimed to comply with the legal requirements
as defined under the various laws and regulations in Pakistan. In doing
so firm not only identify the non-compliances but also assists clients in
its rectification, designing remedial measures and provides guidance to
adhere with the laws and regulations. Firm always endeavor to meet
reporting deadlines as set out by the laws and regulations or as mutually
agreed with clients, without compromising the professional, legal and
ethical requirements.
Firm’s emphasis is on delivering high quality services to clients, adding
value to their business through identification of existing and potential
control risks and suggesting best possible measures in the given
circumstances. Firm always places priority to deploying audit teams to
clients who are well equipped with the specific industry knowledge,
experience and are professionally sound.

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Tax and Corporate Department: -
Firm delivers taxation services to clients and assists them in obtaining
optimal tax benefits available under the laws. Firm also assist clients to
comply with the tax rules and regulations and always keep them
updated with the latest developments and amendments. Tax personnel
are qualified professionals, experienced and knowledgeable. We
maintain a comprehensive tax library which always provides ready
references and timely solution in complex situations. Firm provides a
comprehensive range of tax services which includes;
Preparation and submission of annual tax returns.
Compliance services.
Tax advisory services.
Representation and litigation with tax authorities.
Personal income tax services.
In Shekhar CA & Co. same staff is handling with tax matters as well as
corporate sector. While in corporate firm provides different kinds of
services relating to corporate sector from incorporation to winding up
of a Company.
Computer Department: -
Department handles the computer related matters and assists other
departments in working properly and efficiently. Department deals with
online filing of returns of income for tax department and finalize audit
reports in proper format in a presentable manner. It deals with
networking of computers in office and all other problems which may be
faced by computer users time to time.

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Correspondence Department: -
It handles with all the correspondence of the firm by sending the
solicited and unsolicited information from time to time. Effectively and
efficiently manage the day-to-day operations of the Correspondence.
Interact with clients to resolve policy and customer issues. Identify
trends and remove obstacles in Statement production and delivery by
properly maintaining record of all communication for future reference.
HR Department: -
This department is mainly concerned with the recruitment, hiring/firing
of the firm and this department presents the timely reports on effective
utilization of the resources by the firm. A purpose of the human
resource is to keep the trained employees and recruit new energetic staff
to work. Another purpose of this department is to provide a good
working environment for staff and try to make by facilitating them and
arranging some recreational activities for them. HR knows the real
worth of its employees so cares for them and motivate them to work
more efficiently and diligently.
The hierarchy adopted by Shekhar CA & Co. is in accordance with the
legal structure a CA firm shall have. Although the ICAI rules permit of
not having the supervisors and does not make it mandatory having
senior manager and manager, yet this goes as additional benefit for the
firm of having such an extensive hierarchy.

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CORPORATE SERVICES
 Incorporation of company
 Consultancy on Company Law matters.
 Advisory Planning for Mergers, Acquisitions, De-mergers, and
Corporate re-organizations.
 Filing of annual returns and various forms, documents.
 Clause 49 review for compliance with fiscal, corporate and tax laws
 Secretarial Matters including share transfers
 Maintenance of Statutory records
 Consultancy Services on Public/Rights/Bonus Issue of shares.
 Change of Name, Objects, Registered Office, etc.

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SERVICES OFFERING
 Company Registration: -
The most common business composition is to register a Pvt. Ltd.
Company. Company registration will enable limiting the person
liability of promoters to the extent of paid up capital. Promoters have to
get DIN & check availability of the company name.
 One Person Company: -
Register one-person company (u/s 2 (62) of Companies Act 2013) for
quick start of your business within reasonable fees by experienced CA
firms.
 LLP Registration: -
Limited Liability Partnership (LLP) has benefit of the company
registration & easiness of partnership. It is apt for small businesses.
Experienced CA firms can ease out the process within reasonable fees.
 GST Registration: -
GST registration of business is to enable selling of goods with turnover
value beyond a certain limit. Limit may differ from state to state. It is
necessary to get GST Input Tax Credit. Experienced CA firms can ease
out the process within reasonable fees.
 Project Financing: -
Companies need funds to grow their business. Experienced CA can
prepare project report for loan financing to ensure that you get best
eligible amount in the shortest time. Generally, fees are charged as
percentage of financed amount.

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 ROC Filing: -
Periodic returns/forms need to be submitted to Registrar of Companies
(ROC) for company’s act compliance. Experienced CA firms can file
timely & correct ROC filing in reasonable overall cost.
 GST Return: -
GST returns to be filed on periodic basis by business to provide
information about value of turnover & total GST liability & mode of
payment. Frequency may differ from state to state. Delays will attract
penalty. Experienced CA firms can ensure compliance with reasonable
fees.
 TDS Return: -
Income tax act requires TDS (Tax Deducted at Source) deduction file
the TDS return on periodic basis by mentioning TAN No.
 Income Tax (Salaried): -
Income tax return of salaried employee can be filed with help of Form
16 & Form 16A. Form 26 AS will help you in getting information about
TDS on salary. Experienced CA firm can help you for better tax
planning and reduce the TDS.
 Income Tax (Business): -
Income Tax returns filing is requirement of Income Tax Act for
companies/businesses. Tax Audit Report helps in compliance of
income tax laws. Experienced CA firms can help in reducing non-
compliance of income tax laws.

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 Tally Accounting: -
Tally is most used accounting software. Small and medium sized
business can take services from CA firms who can allocate accountants
to handle accounting for your business.
 Statutory Audit: -
Get the statutory audit of your company under Companies Act from
experienced CA firms. Statutory Audit is compulsory for any type of
company.
 Tax Audit: -
Tax Audit is requirement of Income Tax Act for companies/large
businesses. Tax Audit Report helps in compliance of income tax laws
& highlights key tax related information. Experienced CA firms can
help in reducing non-compliance of income tax laws.
 Internal Audit: -
Internal Audit & Internal Financial Control Testing is needed as per
Companies Act. Internal Audit is not as compulsory as Statutory Audit.
Internal auditor can add value to your business to arrest leakage &
improve control and efficiency.

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AUDIT
Broadly, Audit involves the following:
 In-depth study of existing systems, procedures and controls for
proper understanding. Suggestions for improvement and
strengthening.
 Ensuring compliance with policies, procedures and statutes.
 Comprehensive review to ensure that the accounts are prepared in
accordance with Generally Accepted Accounting Policies and
applicable Accounting Standards/IFRS.
 Checking the genuineness of the expenses booked in accounts.
 Reporting inefficiencies at any operational level.
 Detection and prevention of leakages of income and suggesting
corrective measures to prevent recurrence.
 Certification of the books of account being in agreement with the
Balance Sheet and Profit and Loss Account.
 Issue of Audit Reports under various laws.
Types of Audits conducted: -
 Statutory Audit of Companies.
 Tax Audit under Section 44AB of the Income Tax Act, 1961.
 Audit under other sections of the Income Tax Act, 1961 such as
80HHC, 80-IA, etc.
 Concurrent Audits.
 Revenue Audit of Banks.
 Branch Audits of Banks.
 Audit of PF Trusts, Charitable Trusts, Schools, etc.
 Audit of Co-operative Societies.
 Information System Audit.
 Internal Audits.

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CHAPTER 3
CONCEPTUAL DISCUSSION

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OBJECTIVES OF STUDY
I choose to work with Shekhar CA & Co. During this internship I have
learnt many new skills. Before internship I have only theoretical
knowledge about work in organization but now I have practical some
practical experience of working in organization. Now I have knowledge
about the organization’s working environment and how organizations
work and achieve their goals and objectives.
This internship has to gives me the understanding of business and also
about the elements of strategic thinking, planning and implementation,
and how these things are applied in a real world organization
environment. Following are the objectives that I have in my mind
before working as an internee.
 To improve communication skills.
 To analyze the business situation.
 To establish high standard in professionalism.
 To learn more than the theoretical knowledge.
 To learn book keeping practices of different companies.
 To apply the theoretical knowledge in actual organization.
 To compare practical aspects with theoretical aspects.
 To make quick decision in real situations.
 To learn how to promote and to conduct research in business areas.
 To enhance my personal knowledge and professional preparation
for future.
 To properly integrate my theoretical knowledge and practical work.
 To plan for the future of oneself and learn how to adjust in an
organization.
 To know how to present your recommendations in front of your boss.
 To get knowledge of opportunities and threats while entering into an
organization.
 To get exposure to do a work in an organization and also known about
organizational behavior, ethical rules and regulations.
 Assist the student development of employer-valued skills such as
teamwork, strong communication and attention in details.

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 Expose student to the environment & expectations of performance on
part of accountants in professional accounting practices.
 Enhance & expand the student’s knowledge of particular areas of
accounting.
 Expose the students to professional role models or mentors who will
provide the student with support in the early stages of the internship
& provide an example of behaviour expected in the internship
workplace.
 Expand networks of professionals’ relationship & contacts.
 Develop a solid work ethic & professional demeanour as well as
commitment to ethical conduct & social responsibility.
 Develop time management skills and the ability to be responsible for
more than one project at a time.
 Develop organizational skills to complete the project in a timely
manner.

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JOB DESCRIPTION
I have tried my best to enhance my abilities and apply the knowledge
that I gained during the studies. On my first day at firm, company in-
charge Mr. Shekhar Chandra gave me training session about TDS
returns and computerized accounting in tally software and also shared
his practical experience with me and gave me some techniques of this
process. He also guided me that how to prepare VAT/GST return and
filing data in income tax return preparation software.
Different task that I performed during my internship:
 Vouching
 Preparing books of accounts in tally
 Voucher Entry
 Preparing Data in Excel Sheet
 Preparing Partnership Deed
 Intangible Assets
 Prepare Projected and other Balance Sheet
 Auditing
 Taxation
 Theoretical learning of different type of Taxation and GST
 Maintenance of accounts/ book keeping.
 TDS return preparation.
Software used during internship:
 MS office
 Tally software

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Overview of TDS
Tax deducted at source (TDS) is a tax that is deducted from income that
a company in India pays to a recipient or supplier if the income amount
exceeds a specific statutory limit in a financial year. The types of
income that are subject to TDS include:
 Salary
 Interest and dividends.
 Winnings from the lottery.
 Insurance commission.
 Rent.
 Fees from professional and technical services.
 Payments to contractors and subcontractors.
The withholding amounts for TDS can be deducted from an invoice
submitted by a supplier or from the payment that is issued to the
recipient or supplier. Examples of recipients and suppliers include
contractors, providers of professional services, employees, and real
estate landlords. Companies submit a TDS certificate to each supplier
on a monthly or yearly basis. The certificate includes the payments, as
well as information about the company and supplier. Companies must
also submit an annual return to the government for each recipient or
supplier for the financial year. TDS certificate can be either Form 16
(R75I10A) or Form 26Q-P2P-IND (R75I122EQ). Form 16 is the TDS
certificate which an individual submits and Form 26Q is the TDS
certificate which a company submits to the tax authorities.
TDS must also be deducted from payments issued to third parties by
both corporate and no corporate entities. The entity must deposit the
amount owed for withholding at any of the designated branches of
banks that are authorized to collect taxes on behalf of the government
of India. The entity must also submit the TDS returns, which contain
details about the payments and the challan for the tax deposited to the
Income Tax Department (ITD).

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 TDS RETURNS: -
TDS is a system whereby the income tax is deducted at the time of
making some payments like rent, interest, commission etc. The person
making such specified payments is responsible for deducting the TDS
and paying the balance amount to the person entitled to receive such
payment. The TDS amount deducted must be deposited to the
government within the due dates specified by the person deducting
TDS. While it is commonly assumed that the TDS is applicable only on
salary income, but it is also applicable in many other cases such as:
 Income from interest on securities and debentures.
 Income from interest other than those on securities.
 Income from dividends.
 Income from withdrawal of EPF (Before expiry of a certain period
or if amount withdrawn is beyond the limit specified)
 Payment to contractors/subcontractors/freelancers.
 Winnings from horse races, lottery, crossword puzzles or any
game related wins.
 Income from rendering technical or professional services.
 Income from royalty, etc.
All income is taxable only at the end of the financial year, hence the
government has instituted the concept of TDS, in order to ensure:
 Prevention of tax evasion: This mechanism ensures that the
government collects a portion of the income itself, chances of
hiding income or tax defaults are minimized significantly.
 Timely collection of tax.
 Ease in filing tax returns: As the tax is automatically collected and
deposited with the concerned authorities by the deductor, it
becomes easier for individuals to file their returns. If there are no
other sources of income for a person, once TDS has been
appropriately deducted, they need not pay any additional tax
during return filing.

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 PROCESS FLOW OF TDS: -
This process flow shows the steps to charge and remit TDS: -
Create vouchers for suppliers with
pay status % and applicable tax type
Calculate TDS on vouchers
Issue payments to suppliers with TDS
amounts deducted
Submit monthly payment for TDS to
tax authority
Update Challan
Generate monthly statements and
submit quarterly and annual returns

29
Overview of VOUCHING
Vouching is a technical term which refers to the inspection of
documentary evidence supporting and substantiating a transaction, by
an auditor. It is the practice followed in an audit, with the objective of
establishing the authenticity of the transactions recorded in the primary
books of account. It essentially consists of verifying a transaction
recorded in the books of account with the relevant documentary and the
authority on the basis of which the entry has been made; also
confirming that the authority on the basis of which the entry has been
made; also confirming that the amount mentioned in the voucher has
been posted to an appropriate account which would disclose the nature
of the transaction on its inclusion in the final statements in account.
Vouching do not include valuation. Vouching can be described as the
essence or backbone of auditing.

30
PREPARATION ON BOOKS ON TALLY
Following are the books that were made in tally:
 VOUCHER ENTRY: -
Tally provides flexibility to use predefined voucher types, comprising
of accounting and inventory voucher types to record various business
transactions. It also allows you to use Keyboard Shortcut Keys as well
as mouse operations during voucher entry.
To create a new Voucher Type,
Go to Gateway of Tally > Accounts Info. > Voucher Type > Create
 Enter the Voucher name
 Specify the Type of voucher
 Specify the Method of numbering
 Activate or deactivate the other functions as required.
 BOOKS AND REGISTERS: -
Tally provides you capability to generate various books and registers
for any specific period viz., month, date, and year and as on date. In
Tally, once voucher entry is made, the transactions are automatically &
immediately in the Day Book and other Books of Accounts without any
additional effort. Tally allows you to maintain and generate all primary
books of accounts and registers like:
 Cash Book
 Bank Book
 Purchase Register
 Sales Register
 Journal Register
 Debit Note Register
 Credit Note Register
 General Ledger

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PREPARATION OF PARTNERSHIP DEED
In this, we prepare the partnership deed of different persons, in which
different rules and regulations we mentioned according to the law. A
partnership deed also known as partnership agreement, is a document
that outlines in detail the rights and responsibilities of all parties to a
business operation. It has the force of law and is designed to guide the
partners in the conduct of the business. It is helpful in preventing
disputes and disagreements over the role of each partner in the business
and the benefits which are due to them. The partnership deed normally
carries the name of the business, the address of its principal place of
business and a short summary of the business the partners intend to
operate.
Q.How to prepare a partnership deed in India?
When registering a partnership firm in India for startups, there are some
basics that need to be covered. Partnership and proprietorship are the
two most popular forms of business organisations in India. The reason
why these two forms of organisations are so popular is because they are
relatively easy to set-up and the number of statutory compliance
requirements needing to be followed by these forms of organisations is
relatively less than the statutory compliance requirements applicable to
LLP’s and companies. As such, this article focuses on the registration
process for the partnership firm.
 Choose a partnership name: - The partners are free to choose
any name as they desire for their partnership firm subject to the
following rules:
1. The names must not be too identical or similar to the name of
another existing firm doing similar business, so as to avoid
confusion. The reason for this rule being that the reputation or
goodwill of a firm may be injured, if a new firm could adopt an
allied name.

32
2. The name must not contain words like Crown, Emperor, Empress,
Empire or words expressing or implying the sanction, approval or
patronage of the Government, except when the State Government
signifies its consent (in writing) to the use of such words as part of
the firm name.
 Create a Partnership Deed: - The document in which the
respective rights and obligations of the members of a partnership is
written is called the Partnership Deed. A partnership deed agreement
may be written or oral. However, practically an oral agreement does
not have any value for tax purposes and therefore the partnership
agreement should be written. The following are the essential
characteristics of a partnership deed:
 Name and address of the firm as well as all the partners.
 Nature of business to be carried on.
 Date of commencement of business.
 Duration of partnership (whether for a fixed period/project).
 Capital contribution by each partner.
 Profit sharing ratio among the partners.
 The above are the minimum essentials which are required in
all partnership deeds.
 Consider whether additional clauses are needed: - The
partners may also mention any additional clauses. Some of the
examples of additional clauses which may be mentioned in the
partnership deed are mentioned below:
 Interest on the partner’s capital, partners’ loan, and interest, if any,
to be charged on drawings.
 Salaries, commissions etc., if any, payable to partners.
 Method of preparing accounts and arrangement for audit.
 Division of task and responsibility, namely, the duties, powers
and obligations of all the partners.
 The rules to be followed in case of retirement, death and
admission of a partner.

33
 Do the partnership deed in the appropriate form: - The
deed so created by the partners should be on a stamp paper in
accordance with the Indian Stamp Act. Each partner should have a
copy of the partnership deed. A Copy of the Partnership Deed should
also be filed with the Registrar of Firms in case the firm is being
registered.
 Decide whether or not to register the partnership firm: -
Partnerships in India are governed by the Indian Partnership Act,
1932.As per the Partnership Act, registration of partnership firms is
optional and is entirely at the discretion of the partners. The Partners
may or may not register their Partnership Agreement. However, in
the case where the partnership deed is not registered, the partners
may not be able to enjoy the benefits which a registered partnership
firm enjoys.
 Registration of a partnership firm may be done before starting
the business or anytime during the continuance of
partnership. However, where the firm intends to file a case in
the court to enforce rights arising from the contract, the
registration should be done before filing the case.
 Register: - The procedure for registration of a partnership firm in
India is fairly simple/An application and the prescribed fees are
required to be submitted to the Registrar of Firms of the State in
which the firm is situated. The following documents are also required
to be submitted along with the application:
1. Application for Registration of Partnership in Form No. 1.
2. Duly filled specimen of Affidavit.
3. Certified True Copy of the Partnership Deed.
4. Ownership proof of the principal place of business or rental/lease
agreement thereof.

34
 Sign the application: - The application or statement must be
signed by all the partners, or by their agents especially authorised in
this behalf.
 Expect the registration process to proceed formally: -
When the registrar is satisfied with the points stated in the partnership
deed, he or she shall record an entry of the statement in a register
called the Register of Firms and issue a Certificate of Registration.
The Register of Firms maintained at the office of the Registrar
contains complete and up-to-date information about each registered
firm.
 This Register of Firms is open to inspection by any person on
payment of the prescribed fees; any person interested in
viewing the details of any firm can request the Registrar of
Firms for the same and on payment of the prescribed fees, a
copy of all details of the firm registered with the Registrar will
be given to the applicant.
 Be registered for tax: - It should be noted that registration with
the Registrar of Firms is different from registration with the Income
Taxation Department. It is mandatory for all firms to apply for
registration with the Income Tax Department and have a PAN Card.
After obtaining a PAN Card, the partnership firm is required to open
a Current Account in the name of the partnership firm and to operate
all its operations through this bank account.

35
Overview of VAT
Preparation of VAT returns
At the end of the month or each quarter, you file a VAT return with the
tax office, and remit the VAT due.
 Prerequisites
You have carried out the activities described in closing for VAT.
 Process
1. You prepare a copy of the sales ledger and the purchase ledger.
The ledgers show the invoices that have been paid and on
which VAT is thus due. The ledgers are for your own
reference in the event of a check-up by the tax office.
2. You prepare the VAT return. This consists of two steps.
1. You calculate the total amounts of VAT for each tax code.
2. You print the VAT return. The system fills out the fields in
the VAT return using the totals that you calculated in the first
step.
3. For information about preparing VAT returns for VAT
withheld from vendors.
4. You file the VAT return with the tax office and remit the taxes.

36
 Computer online software
Tax Solution for professionals is to provide end to end management of
every stage of the tax life cycle - from provision to estimates and
extensions, returns, audit, amendment and planning.
 A Solution For
 Income Tax Return
 TDS return
 Service tax return
 Balance sheet & audit report
 VAT returns
 Checking of assessment orders
 ROC form and filling
 CMA
 AIR return
 Document Management
 Challan
 All other required forms
 Standard letters to clients
 Standard formats of departmental letters
 Office assistance works & mechanism.
 Various types of reporting.

37
 Features
 Single switch board for all software.
 Common client information for all software.
 Searching of records by Code No., Name PAN, etc.
 Online auto-update of software.
 Defining user rights with grouping facility.
 Password protection for individual clients.
 Activation/De-activation of individual party from
particular/all software.
 Single window/screen to input, edit, view and print.
 Front-view buttons for easy understanding.
 User friendly similar layout of all software.
 LAN compatible.
 Various data input validation checks to eliminate errors.
 Easy auto backup of your precious data.
 Option to access from anywhere in the world.
Q.What is VAT?
Every commodity passes through different stages of production and
distribution before finally reaching the consumer. Some value is added
at each stage of the production and distribution chain: for instance, a
forged metal tool is more valuable than metal, which was itself more
valuable than the ore that was originally mined. Value Added Tax
(VAT) is a tax on this value addition at each stage.
Under a VAT system, a dealer collects tax on his sales, retains the tax
paid on his purchase and pays the balance to the government. It is a
consumption tax, because it is borne ultimately by the final consumer.
The tax paid by the dealer is passed on to the buyer. It is not a charge
on the dealer. VAT is instead a multipoint tax system with provision for
collection of tax paid on purchases at each point of sale.

38
Q.What is Output Tax?
Output tax is VAT charged to the customer by a dealer making taxable
sales. A dealer is an individual, partnership, or business that is
registered under VAT. Any person or business making sales above the
prescribed limit are required to register. When a dealer is registered,
VAT becomes chargeable on all taxable sales made by that dealer.
Q.What is Input Tax?
The tax a dealer pays for purchases is input tax. Many purchases will
carry a VAT charge, but when a dealer is registered under VAT, they
can normally claim a credit for VAT charges on most business
purchases. Input tax includes not only the VAT on your purchases of
raw materials or on goods purchased for resale but also VAT on capital
goods, such as machinery or equipment.
VAT Computation
A dealer pays VAT by deducting the tax paid on purchases (input tax)
from his tax collected on sales (output tax).
In other words, VAT = Output Tax – Input Tax.
For example: A dealer pays Rs.10.00 @ 10% on his purchase price of
goods valued Rs.100.00. He sells the goods at Rs.150.00 and collects
tax amounting to Rs.15.00 (@ 10%). He will pay Rs.5.00 (Rs.15.00-
Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasing
those goods.
Q.How is VAT different from Sale Tax?
VAT has fewer rates, as opposed to the high number of rates for Sales
Tax, and allows offsets of tax on inputs against those on outputs. VAT
also does away with the tax on tax.

39
Q.Who will be covered by VAT?
All business transactions involving the sales of goods/commodities
carried on within a state by individuals, partnerships, or companies will
be covered by VAT.
VAT will not cover small businesses with sales below a certain limit.
In Maharashtra, the limit is 10 lakhs or below.
Q.What are the tax rates under VAT?
Since every state has its own VAT legislation, VAT rates, taxable base
and list of taxable goods, VAT rates will differ from state to state. As
an example, here are Maharashtra’s tax rates as of June 2016:
 Schedule ‘A’ – Essential Commodities (Tax-free) – Nil
 Schedule ‘B’ – Gold, Silver, Precious Stones, Pearls etc. – 1%
 Schedule ‘C’ – Declared Goods and other specified goods – 5%
(Rates for items other than declared goods changed to 5.5%)
 Schedule ‘D’ – Foreign Liquor, Country Liquor, Motor Spirits,
etc. – 20% and above
 Schedule ‘E’ – All other goods (not covered by A to D) – 12.5%
starting April 1, 2016.
Q. How does VAT help trade, consumers, and government?
 Trade
Uniform rates of VAT will boost trade; 100% self-assessment will
reduce the need for taxpayers to visit a tax department officer.
 Customers
Removing tax on tax reduces prices of goods that the end
consumer pays.
 Government
Since dealers will conduct self-assessment, the resources required
for this process will be fewer, and the revenue department can
focus more on collection than administrative processes.

40
Overview of Tally ERP 9
 Journal Entry
Journal Vouchers are used to adjust the debit and credit amounts
without involving the cash or bank accounts. Hence, they are referred
to as adjustment entries.
 Creating a Journal Entry: -
Journal entries are usually used for finalization of accounts. To pass
a Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers
· Click on F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or
interest due. If you have to receive Interest from a party, the same
can be entered using Journal Voucher.
1. Debit the Party
2. Credit the Interest Receivable Account the Journal entry is
displayed as shown:

41
SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
 ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
 CTRL+R: Recalls the Last narration saved for a specific voucher
type, irrespective of the ledger.
Allowing Cash Accounts in Journals:
Journals are adjustment entries, which do not involve Cash account and
Bank account. However, in exceptional cases where the user would like
to account Journal entries involving Cash/Bank Account, Tally.ERP 9
has the flexibility of passing such entries by enabling the option under
F12 configuration.
To enable Cash Accounts in Journal voucher,
Set Allow Cash Accounts in Journals to Yes in F12: Configure
(Voucher Entry Configuration).

42
To pass a Journal voucher with Cash/Bank Ledger,
1. Go to Gateway of Tally > Accounting Vouchers > Select F7:
Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will
appear as shown:

43
 Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Purchase Returns, Escalation/De-
escalation in price, any other expenses incurred by you on behalf of
the party etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory
features.
· To use it in Voucher mode you need to enable the feature in F11:
Accounting Features - Use Debit / Credit Notes.
· To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.
To go to Debit Note Entry Screen,
· Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for the goods purchased returned to Supplier
A:

44
1. ALT+R: Recalls the Last narration saved for the first ledger in the
2. CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.
 Credit Note Entry
Credit Note is a document issued to a party stating that you are crediting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Sales Returns.
A Credit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory
features.
· To use it in Voucher mode you need to enable the feature in F11:
Accounting Features - Use Debit / Credit Notes.
· To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.
To go to Credit Note Entry Screen:
1. Click on Ctrl+F8: Credit Note on the Button Bar or press
Ctrl+F8. You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for goods sold returned from Customer A:

45
· 1. ALT+R: Recalls the Last narration saved for the first ledger in the
·
· 2. CTRL+R: Recalls the Last narration saved for a specific
voucher type, irrespective of the ledger.
·

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AS-26 INTANGIBLE ASSETS
Intangible asset is a non-physical non-monetary asset which is held for
use in the production or supply of goods and services, or for rental for
others, etc.
As 26 should be applied by all enterprises in accounting of intangible
assets, except:
• Intangible assets that are within the scope of another standard
financial assets.
• Rights and expenditure on the exploration for or development of
minerals, oil natural gas and similar non-generative resources.
• Intangible assets arising in insurance enterprise from contracts with
policyholders.
Recognition and Initial Measurement of an Intangible Assets
It applies when an item meets the criteria of an Intangible asset and it is
probable that the future economic benefits will flow to the enterprise
and the cost of the asset can be measured reliably. These recognition
criteria are applicable to cost of acquiring and generating an intangible
asset internally.
Note: If an intangible asset is acquired separately, that should be
measured initially at cost, which includes purchase price that includes
import duty, non-refundable purchase taxes, after deducting trade
discount and related direct cost.
If an asset is acquired in a business combination, the cost of that asset
should be its fair value at the acquisition date which depends on market
expectations. When the asset is acquired free of charge or for a normal
consideration, by way of government grant, then it is recognized at a
nominal value or at the acquisition cost.

47
OVERVIEW ON AUDITING
An auditor is someone who prepares and examines financial records.
They ensure that financial records are accurate and that taxes are paid
properly and on time. They assess financial operations and work to help
ensure that an organization runs efficiently.
In this area, we were done different type of work such as matches the
balances of transactions from software information with our tally
voucher entries information. We check different financial records of
companies any analyze that and identify the mistakes then give some
suggestions to them.
An audit is a systematic and independent examination of books,
accounts, statutory records, documents and vouchers of an organization
to ascertain how far the financial statements as well as non-financial
disclosures present a true and fair view of the concern. It also attempts
to ensure that the books of accounts are properly maintained by the
concern as required by law. Auditing has become such a ubiquitous
phenomenon in the corporate and the public sector that academics
started identifying an Audit Society. The auditor perceives and
recognizes the prepositions before them for examination, obtains
evidence, evaluates the same and formulates an opinion on the basis of
his judgement which is communicated through their audit report.
Any subject matter may be audited. Auditing is a safeguard measure
since ancient times. Audits provide third party assurance to various
stakeholders that the subject matter is free from material that the subject
matter is free from material misstatement. The term is most frequently
applied to a legal person. Other areas which are commonly audited
include: secretarial and compliance audit, internal controls, quality
management, project management, water management and energy
conversion.

48
 Auditing Standards
The Public Company Accounting Oversight Board (PCAOB)
maintains external auditing standards for public companies (issuers)
registered with the Securities and Exchange Commission (SEC).
As of 2012, PCAOB has 15 permanent standards approved by the SEC
and a number of interim standards that reflect generally accepted
auditing standards, as described in standards issued by the Auditing
Standards Board (ASB), which is part of the American Institute of
CPAs (AICPA).
The ASB also issues Statements on Auditing Standards (SASs) that
apply to preparing and releasing audit reports for non-issuers
(companies not required to register with the SEC). AICPA members
who audit a non-issuer are required by the AICPA Code of
Professional Conduct to comply with these standards. As of 2012,
there are more than 60 active standards.
For internal auditing, the Institute of Internal Auditors provides a
conceptual framework called the International Professional Practices
Framework (IPPF) that provides guidance for internal audits. Some of
the guidance is mandatory, while others are considered strongly
recommended, but not required by law.
There are four main steps in the auditing process. The first one is to
define the auditor’s role and the terms of engagement which is usually
in the form of a letter which is duly signed by the client.
The second step is to plan the audit which would include details of
deadlines and the departments the auditor would cover.

49
The next important step is compiling the information from the audit.
When an auditor audits the accounts or inspects key financial
statements of a company, the findings are usually put out in a report
or compiled in a systematic manner.
The last and most important element of an audit is reporting the
result. The results are documented in the auditor’s report.
 Audit Planning
Audit planning includes deciding on the overall audit strategy and
developing an audit plan.
Auditing Standard No. 9 from the PCAOB describes an external
auditor's responsibility and the requirements for planning an audit.
According to standard No. 9, an audit plan is expected to describe the
planned nature, extent, and timing of the procedures for risk
assessment and the tests to be done on the controls and substantive
procedures, along with a description of other audit procedures planned
to ensure the audit meets PCAOB standards.
For internal auditing, the Institute of Internal Auditors provides
guidance for audit planning. Planning starts with determining the
scope and objectives of the audit.
Internal auditors need to understand the business, operations, and
unique characteristics of the department/unit being audited and to
develop an audit plan that defines the procedures needed to do an
efficient and effective audit.

50
OVERVIEW ON GST
 What is GST?
GST is an Indirect Tax which has replaced many Indirect Taxes in
India. The Goods and Service Tax Act was passed in the Parliament on
29th March 2017. The Act came into effect on 1st July 2017; Goods &
Services Tax Law in India is a comprehensive, multi-stage, destination-
based tax that is levied on every value addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied
on the supply of goods and services. This law has replaced many
indirect tax laws that previously existed in India.
GST is one indirect tax for the entire country.
So, before Goods and Service Tax, the pattern of tax levy was as
follows:

51
Under the GST regime, the tax is levied at every point of sale. In the
case of intra-state sales, Central GST and State GST are charged. Inter-
state sales are chargeable to Integrated GST.
Now let us try to understand the definition of Goods and Service Tax –
“GST is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.”
Multi-stage
There are multiple change-of-hands an item goes through along its
supply chain: from manufacture to final sale to the consumer.
Let us consider the following case:
• Purchase of raw materials
• Production or manufacture
• Warehousing of finished goods
• Sale to wholesaler
• Sale of the product to the retailer
• Sale to the end consumer

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Value Addition
The manufacturer who makes biscuits buys flour, sugar and other
material. The value of the inputs increases when the sugar and flour are
mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing agent who
packs large quantities of biscuits and labels it. That is another addition
of value after which the warehouse sells it to the retailer.
The retailer packages the biscuits in smaller quantities and invests in
the marketing of the biscuits thus increasing its value.
GST is levied on these value additions i.e. the monetary value added at
each stage to achieve the final sale to the end customer.
Destination Based
Consider goods manufactured in Maharashtra and are sold to the final
consumer in Karnataka. Since Goods & Service Tax is levied at the
point of consumption. So, the entire tax revenue will go to Karnataka
and not Maharashtra.

53
 Advantages of GST
GST has mainly removed the Cascading effect on the sale of goods
and services. Removal of cascading effect has impacted the cost of
goods. Since the GST regime eliminates the tax on tax, the cost of
goods decreases. GST is also mainly technologically driven. All
activities like registration, return filing, application for refund and
response to notice needs to be done online on the GST Portal; this
accelerates the processes.
 Components of GST
There are 3 taxes applicable under this system: CGST, SGST & IGST.
• CGST: Collected by the Central Government on an intra-state sale
(Eg: transaction happening within Maharashtra)
• SGST: Collected by the State Government on an intra-state
sale (Eg: transaction happening within Maharashtra)
• IGST: Collected by the Central Government for inter-state sale
(Eg: Maharashtra to Tamil Nadu)

54
OVERVIEW ON Taxation
A tax is a mandatory financial charge or some other type of levy
imposed upon a taxpayer by a governmental organizational in order to
fund various public expenditures. A failure to pay, along with evasion
of or resistance to taxation, is punishable by law.
In this we learned about the Direct & Indirect taxes. We filled most of
the income tax returns of different clients.
In this we learned about different heads of income, calculation of taxes
& different deduction with sections. As well in Indirect taxes we file
returns of GST in which different forms are involved for Regular
scheme & Composition scheme. For regular scheme we filled GSTR-1
& GSTR-3B (online) and for composition scheme we filled GSTR-4
(offline)
 Purposes & Effects
The levying of taxes aims to raise revenue to fund governing and to
alter prices in order to affect demand. States and their functional
equivalents throughout history have used money provided by taxation
to carry out many functions. Some of these include expenditures on
economic infrastructure, military, scientific research, culture and the
arts, public works, distribution, data collection and dissemination,
public insurance, and the operation of government itself. A
government’s ability to raise taxes is called its fiscal capacity.
 Types of Taxes
Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly
by you, such as the dreaded income tax, wealth tax, corporate tax etc.
while others are indirect taxes, such as GST.

56
Description of process followed to accomplished the assigned
task in the organization
 Tally Entries
Following process are followed for accomplishment this task:
• Firstly, we review all records of vouchers carefully, that no any
vouchers had any queries related to adjustments.
• Then, we make a separate folder for that work.
• Then, we create a company in Tally software by that company name
and started doing entries.
• Receipts & Payment entries are posted carefully as it carries some
contra entries also.
• Then after completing entries posting recheck the data by Balance
sheet, Trial balances & Day book.
• Any queries related to this work communicated to our external
mentor.
 Auditing
These steps were followed by us in auditing:
• Build an audit strategy.
• Verify that all outgoing checks were properly signed, accounted for
and posted to the correct accounts.
• Ensure that all deposits were properly posted.
• Review all financial statements.
• Ensure compliance with all state and federal requirements.
• Review all treasurers’ reports.
• Complete the financial review worksheet.
• Suggest improvements to internal controls.
• Determine your audit opinion.
• Submit all documents to companies.

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 Taxation
Following steps are followed by us –
• All of the first, we study about the taxation and mainly headed
Income Tax.
• Then, we started to prepare ITR’S statement in excel sheet
according to the format given to us.
• After that, we prepare the offline utilities of ITR’S according to the
income status in statement.
• Then, we login to the income tax site and upload that utility online,
if user not registered then first we registered them.

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Detailed description of any specific
study/research conducted by you under the
supervision of your mentor(faculty), the
study should co-related with internship
functional area

59
TOPIC – TAXATION
What is TAX?
A tax is a mandatory financial charge or some other type of levy
imposed upon a taxpayer (an individual or other legal entity) by a
governmental organization in order to fund various public expenditures.
A failure to pay, along with evasion of or resistance to taxation, is
punishable by law. Taxes consist of Direct and Indirect taxes and may
be paid in money or as its labor equivalent.
 Purposes and Effects -
The levying of taxes aims to raise revenue to fund governing and to
alter prices in order to affect demand. States and their functional
equivalents throughout history have used money provided by taxation
to carry out many functions. Some of these include expenditures on
economic infrastructure, military, scientific research, culture and the
arts, public works, distribution, data collection and dissemination,
public insurance, and the operation of government itself. A
government’s ability to raise taxes is called its fiscal capacity.
 Types of Taxes –
Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly
by you, such as the dreaded income tax, wealth tax, corporate tax etc.
while others are indirect taxes, such as GST.
a. Direct Taxes
b. Indirect Taxes
Direct Tax
An Income tax is a tax that government impose on financial income
generated by all entities within their jurisdiction. By law, businesses
and individual must file an income tax return every year to determine
whether they owe any taxes or are eligible for a tax refund.

60
 Financial year – A year as reckoned for taxing or accounting
purposes.
 Assessment year – Assessment year is the year immediately
following the financial year wherein the income of the financial year
is assessed.
There are some examples of Direct Taxes like:
1. Income Tax
2. Corporate Tax
3. Wealth Tax
4. Gift Tax
5. Estate Duty
6. Expenditure Tax
7. Fringe Benefit Tax
 Income Tax is a tax imposed on individuals or entities that
varies with respective income or profits. Income tax generally is
computed as the product of a tax rate time’s taxable income.
There are 5 different heads of income sources for tax:
1. Salary
2. House Property
3. Profit & Gains from Business & Profession
4. Capital Gains
5. Other Sources
We calculate tax on financial year income in assessment year in which
year we are calculating the income tax. These are filing ITR necessarily:
1. Individual/Proprietors
2. Firms
3. Trust/ NGO’s/Societies/Association Of Persons/Body Of
Individuals.
4. Companies
5. Local authorities/Municipality

61
There are different tax rate slabs for different age groups, different work
& different status:
 Income Tax slabs for Individual Tax Payer & HUF (less
than 60 years old) for F.Y. 2019-20

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 Income Tax Slabs for Senior Citizens (60 years old or more but
less than 80 years old) for F.Y. 2019-20

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 Income Tax Slabs for Senior Citizens (80 years old or more)
for F.Y. 2019-20

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 Income Tax Slabs for Domestic Companies for F.Y. 2019-20
 Due Dates of Filing Return
(This is income tax return for the financial year 2018-19. Applicable for income
earned from April 1st, 2018 to March 31st, 2019).
Important Due Dates of Income tax return filing for the year 2019

65
Whenever we talk about income tax, there are various kind of compulsory tax
formalities that need to be followed by a person and that too within the specified
due dates prescribed, such as filing of income tax returns, paying advance tax on
time.
Here is the TAX CALENDAR for 2019.

66
Indirect Tax
An indirect tax is a tax collected by an intermediary from the person
who bears the ultimate economic burden of the tax. The intermediary
later files a tax return and forwards the tax proceeds to government with
the return. GST is the most prominent example of Indirect tax levied in
India on the supply of goods & services. GST is levied at every step in
the production process, but is refunded to all parties in the chain of
production other than the final consumers. Goods & Services are
divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18%
and 28%.
Petroleum products, alcoholic drinks, electricity, and real estate are
taxed separately by the individual state governments. India adopted a
dual GST model, meaning that taxation is administered by both the
Union & State governments. Transactions made within a single state
are levied with Central GST (CGST) by the Central government and
State GST (SGST) by the State governments. For inter-state
transactions and imported goods & services, an integrated GST
(IGST) is levied by the Central government.
The GSTN software is developed by Infosys Technologies and IT
network is maintained by the NIC. “Goods & Services Tax” Network
(GSTN) is a non-profit organization formed for creating sophisticated
network, accessible to stakeholders, government and taxpayers to
access information from on a single source (portal).

67
CHAPTER 5
LEARNING, CONCLUSION
AND SUGGESTIONS

68
Behavioral Learning from the Organization
 COMMUNICATION
Good communication consists of many other different sub-skills, from
suitable patterns of body language and eye contact with the ability to
write clear and accurate reports. Accurate listening and the ability to
follow instructions are especially important but are often ignored or
taken for granted. Many people simply do not pay close attention to
what others say or write and do not ask follow-up questions to check
their understanding. As a result, individuals act on their own inaccurate
assumptions and create inefficiencies and frustrations at work.
Communication training will help them overcome these challenges.
 GOAL SETTING AND PLANNING
Anybody can wish for something to happen, but to accomplish anything
one must plan which surprisingly few people know how to do. Planning
requires setting concrete goals, identifying workable action steps, and
making a commitment to see the plan through.
Even setting the primary goal can be difficult when multiple issues are
competing for attention. Effective planning requires arranging
problems by importance and delegation. It is impossible to do
everything at once, but if one focuses on the most important tasks and
ask for help, then can accomplish a lot.
 SELF-IMPROVEMENT
Life in the workplace should not enforce stagnation; there should be a
constant need or desire for improvement. Satisfaction leads to a
perception of repetition, which is the essential of a job perceived as
unchallenging. Employees should improve to avoid both the frustration
of inexperience and contentment with their work.

69
People always have room to grow, and advance behavioral skills are
always welcomed. At the upper end, one can give your workers the
tools and mindset to aim for improvement by observing their behavior,
work habits, and production. Self-improvement training will help
provide feedback and criticisms that they can use to benefit their next
assignments. An essential part of promoting improvement is to
communicate to the employees that failure.
 EMPATHY
Being an empathetic individual comes naturally to some, but is less
natural to others. Behaving with empathy means more than feeling bad
for someone who’s sad or sharing in someone else’s joy. It means being
able to step into someone else’s world to understand not just what their
point of view is, but also why they have that point of view.
Empathy is a behavioral skill that can help one not only keep their own
peace of mind but can also help one to grow in your career because
empathetic people tend to put others at ease.
 CONFLICT RESOLUTION
At points of imbalance and friction, the employees must be able to
confront the tension between them and resolve whatever disagreement
arises. This is a twig of communication, though it is a distinct skill that
can be hard to develop due to hesitation and the intimate nature of the
workplace.
The bad habit to breed is ignoring these conflicts to the point that they
grow and spread like wild-fire, damaging relationships and the
productivity of both individuals and the team. Instead, employers
should remain aware of potential conflicts and be active in entering and
facilitating these more emotional interactions, and over time, help their
workers see the bigger picture when they harbor uncertainties.

70
5 BEST PRACTICES OBSERVED IN THE
ORGANIZATION
 There is no racism on the basis of any caste, creed, color or gender.
Everyone is treated same thus making it easy to co-ordinate with each
other and to share views and ideas with each other. The mentors as well
as the colleagues are always ready to sort out any problem that the
interns could not resolve on their own.
 Everyone is disciplined and dedicated towards their job, thus provides
motivation to do our jobs perfectly and to learn and grab as much as we
can. The perfect competitive environment always motivates us to excel
in our job responsibility and to perform better than we are performing
 The working environment is lenient in the organization. Neither the
employees are overburdened by the work given. Neither they nor the
proprietor force them to work for extra time. All the work/targets are
completed by the employees in the provided time frame.
 The employees are always energetic and ready to do work; they don’t
waste their time. They always strive for excellence with effectiveness
and efficiency in their work. Even if the proprietor is not at the office
they don’t skip work hours.
 The proprietor is really good at customer handling, he is always too
humble towards the clients even though if the clients are in bad mood
or tempered, he never loses his temper and handles them greet fully. he
never abuses his employees even if they make silly mistakes, and
corrects their mistakes by smiling and sarcastically commenting on it
so the employees don’t feel down and eventually improve themselves.

71
SUGGESTIONS AND RECOMMENDATIONS
Though the organization is really good at everything and everything is
well maintained and managed. But still there are some chances of
improvement whether it is a human being or any organization till there
are improvements and chances to develop and grow, the organization
must improve itself at its best. In my opinion some of the
suggestion/recommendations are:
 They have good opportunity to introduce the ISO standards training
program which no other firm is giving to customer.
 Try to adopt new technologies that their competitors are not using.
 Make a network that allows its customers to negotiate with them
easily.
 In comparison with their competitors, SHEKHAR CA & CO. has
an edge in making an accurate and error free report.
 The local economy continues to be strong and we believe our
typical clients will continue to flourish.
 The company has mostly professional educated human
resources, which are the biggest threat for their competitors.
 Shekhar CA & Co. strongly needs to improve its network firms so
as to be counted among one of the extensively know firms in UK.
The partner needs to make the best use of their goodwill to bring
more clientage and reputation to firm. They need to offer the audit
services at most economical cost with the assured quality services
to retain and expand clients.
 The infrastructure and working condition reviews can improve the
working efficiency of the trainees. Audit and Assurance is the
tough job. Some motivational meetings and mentoring exercises
would bring good feel among employees for their work. Time to
time financial bonuses or performance incentives will energize the
staff.

72
 The trainees are not offered extra financial or any other incentive
for the extra work or over time. This causes some sort of
abstractions which immediately need to be overcome by the
management.
 The firm, to be more competitive in future, still has room for
improvement in Information Technology. As firm don’t have any
of its website to attract customer and their timely feedback as most
of the good firms have their own web and well organized.
 Firm also lacks in marketing perspective as it does not any
marketer to market and introduce their business, firm is getting
business only on personal relations of the partners and other firm
personnel. So if firm wants to improve its business volume it needs
a professional marketer as many other big firms adopted and have
complete marketing department.
 The employees are provided less salary than the government has
asked to provide in minimum wage act, therefore the employees
must be provided at least the minimum salary.
 It is 6 days working in the organization; most of the organizations
are using 5 days working schedules so that employees don’t feel
exhausted and their efficiency increases. So the organization must
provide at least one-day leave to the employees to rest and freshen
up.
 Most of the computers and laptops in which the work was done
were old and because of that we were unable to carry out our tasks
properly. The organization must have proper systems so that the
work load can be handled efficiently.

73
LIMITATIONS
 They have a small staff with limited skill set in many areas.
 Less number of staff members.
 Developments in technology are changing this market. Shekhar CA &
Co. needs to adopt new technology and adapt to the changed market
realities.
 Change in government policies and procedures may act as threat for
company.
 A small change in focus of large competitor might wipe out any market
position achieved.
 Shekhar CA & Co. has many competitors. Under certain
circumstances stiff competition can threaten the margins and hence the
survival of the firm.

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CONCLUSION
 Shekhar CA & Co. is overall one of the profit making and reputed firm
of Earth. The organization since its very first day is devoted to
providing quality services. The detailed and through review of work
and clients’ trust shows the perfection with which it is working.
 The firm has earned a distinction of being placed in the category 'A' in
the list of panel of auditors maintained by State Bank of India.
Moreover, only these “A” category firms can audit of listed
companies.
 The Institute of Chartered Accountants of India has also carried out
the Quality Control Review and has issued satisfactory QCR report
stating that the firm has conducted the audits of the clients in
accordance with International Standards on Auditing.

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REFERENCES
 https://cleartax.in/s/income-tax-slabs
 https://economictimes.indiatimes.com
 https://www.avalara.com
 https://www.business-standard.com
 https://www.google.co.in/imghp?hl=en&tab=wi&ogbl
 http://www.gstcouncil.gov.in/
 https://www.myloancare.in/tax/income-tax-slabs-rates/
 https://www.wikipedia.org/
 www.google.com

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